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UK Hotel Sector Remains Strong Despite Business Slowdown

LONDON-Property agent Christie & Co says that the events of 11 September have compounded the two-tier hotel market. Hoteliers are trading well, however, and are on the lookout for good-quality hotels.

By Charlie Jacoby | Updated on February 14, 2002

LONDON-Not much troubles the hotels market. Christie & Co director Simon Hughes says that, despite the events of 11 September, most hoteliers continue to thrive and good quality hotels are still much in demand from potential buyers.

The market for hotel properties remains steady in terms of supply and demand – despite negative press reports. Last year, hotel values rose 5.1%, well ahead of inflation, making the hotel sector the strongest of all the specialist property markets.

‘In such a climate, and given that trading in general remains sound in almost all segments of the market, there is little incentive for operators to trade in their business for a lower-yielding, passive investment,’ said Hughes. ‘As a result, we are not seeing a glut of properties coming to the market and, fortunately, few distressed sales. Owners who are selling their businesses are finding that there is a strong demand for quality businesses which can demonstrate a robust trading performance.

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